DoorBox Corporation

Management’s Discussion and Analysis of Financial Condition and Results of Operations

You should read the following discussion and analysis of our financial condition and results of operations together with our financial statements and the related notes and other financial information included elsewhere in this offering. Some of the information contained in this discussion and analysis, including information regarding the strategy and plans for our business, includes forward-looking statements that involve risks and uncertainties. You should review the "Risk Factors" section for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis.

Overview

Developer of Artificial Intelligence, Machine Learning and Internet of things based Automatic Smart DoorBox's. Key less Control from Mobile-App, Live Videos, images of deliveries and many more options. No Human Intervention required.

In 5 years, we want Smart DoorBox to be there in front of every house, offices, hotels or any premise in the World. People should not stand in Line for Groceries, Pharmacies, Food Deliveries or any other place.

Given the Company’s limited operating history, the Company cannot reliably estimate how much revenue it will receive in the future, if any.

Milestones

DoorBox Corporation was incorporated in the State of Nevada in September 2017.

Since then, we have:

• 💰🥇TAM - Online Ecommerce $5.23 trillion, Pharma $1.17 trillion, Delivery Logistics $625 Billion
• 📦AI Driven, ML based package detection and IoT-enabled automatic Locking system
• 🚀Expected YoY growth in Revenue and Subscription for B2C, B2B, B2B2C sectors of over $83 Million
• 💰Generate Revenue - Rent out or Pick Up at your convenience from any nearby location
• 🤳On the Move - Get Live Videos and complete control from Mobile-App
• ✔️Successful team from Google, LinkedIn, PWC, AT&T, Verifone with Multiple exits
• 📝✔12 GRANTED utility patents generating massive demands in USA, Europe, Asia

Historical Results of Operations

• Revenues & Gross Margin. For the period ended December 31, 2021, the Company had revenues of $83,929 compared to the year ended December 31, 2020, when the Company had revenues of $75,231.
• Assets. As of December 31, 2021, the Company had total assets of $170,889, including $87,731 in cash. As of December 31, 2020, the Company had $219,147 in total assets, including $89,088 in cash.
• Net Loss. The Company has had net losses of $115,852 and net losses of $129,432 for the fiscal years ended December 31, 2021 and December 31, 2020, respectively.
• Liabilities. The Company's liabilities totaled $416,173 for the fiscal year ended December 31, 2021 and $348,579 for the fiscal year ended December 31, 2020.

Related Party Transaction

Refer to Question 26 of this Form C for disclosure of all related party transactions.

Liquidity & Capital Resources

To-date, the company has been financed with $189,461 in debt and $400,000 in SAFEs.

After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 6 months before we need to raise further capital.

We plan to use the proceeds as set forth in this Form C under "Use of Funds". We don’t have any other sources of capital in the immediate future.

We will likely require additional financing in excess of the proceeds from the Offering in order to perform operations over the lifetime of the Company. We plan to raise capital in 12 months. Except as otherwise described in this Form C, we do not have additional sources of capital other than the proceeds from the offering. Because of the complexities and uncertainties in establishing a new business strategy, it is not possible to adequately project whether the proceeds of this offering will be sufficient to enable us to implement our strategy. This complexity and uncertainty will be increased if less than the maximum amount of securities offered in this offering is sold. The Company intends to raise additional capital in the future from investors. Although capital may be available for early-stage companies, there is no guarantee that the Company will receive any investments from investors.

Runway & Short/Mid Term Expenses

DoorBox Corporation cash in hand is $71,928, as of July 2022. Over the last three months, revenues have averaged $882/month, cost of goods sold has averaged $396/month, and operational expenses have averaged $3,100/month, for an average burn rate of $2,614 per month. Our intent is to be profitable in 18 months.

Since the date our financials cover, we received a funding of an additional $50,000 from Expert Dojo in Jan 2022.  We have also developed Smart DoorBox and we have created many prototypes and are ready to manufacture on a large scale.  Additionally, we ran out of stock and we did not sell for most part of the first half of the year while the DoorBoxes were intransit.

Currently, we are almost out of inventory, and we would need additional capital to replenish and make our new Smart DoorBox as we have to fulfill minimum order quantity (MOQ) for Smart DoorBoxes to receive attractive unit pricing. Our anticipated revenues in the next 3-6 months are $3,500 per month, and our anticipated expenses in the next 3-6 months are $2,600 per month.

We currently have a gross profit of approximately 55%.  We outsource all operational tasks to apaengineering.com [a contract manufacturing outfit at www.apaengineering.com ] and we pay for only the services that we use from that firm, and so our operational overhead is limited and our expenses can be flexible and can match our revenue nicely.  However, in order to be profitable, we need to sell at least $20,000 worth of DoorBoxes every month to balance our operating expenses. We will ultimately need to raise a total of $2 Million to reach a point of profitability, and we are expecting to reach this point in 18 months,

Outside of funds raised on Wefunder, the founder has a network of angel investors,  some of whom are current investors in DoorBox, who are able and willing to help the Company cover short term burn. 

Any projections in the above narrative are forward-looking and not guaranteed.